SDRL - Status on voluntary conversion offers of convertible bonds due 2012 and 2014

Hamilton, Bermuda, December 17, 2010 - Seadrill Limited is pleased to announce

that holders of approximately US$340,000,000 of Seadrill's convertible bonds due

2012 and approximately US$400,000,000 of Seadrill's convertible bonds due 2014

have submitted their acceptances of the voluntary conversion offers.

Seadrill reiterate that the maximum offering amount in principal amount for the

convertible bonds due 2012 is US$250,000,000 and will not be increased. A pro-

rata basis scale back will be applied for accepting bondholders that participate

in the conversion offer.

Bondholders in Seadrill's convertible bonds due 2014 are hereby reminded about

the "90% clean-up call" as described in the loan agreement gives Seadrill the

right to call the remaining part of the bonds at par value plus accrued interest

provided that 90 per cent or more of the original issued amount of

US$500,000,000 have been redeemed or converted into shares.

The acceptance period for the offering period will close today at December

17, 2010 at 17:30 CET.

ABG Sundal Collier Norge ASA, Credit Suisse Securities (Europe) Limited and

Deutsche Bank AG, London Branch are engaged by Seadrill as managers for the

incentive offers.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1473692]

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